02 Jun Baby Boomers Getting Busy
The world is poised for a far reaching, global phenomena, but this one will not be caused by Donald Trump. We are heading for The Entrepreneurial Revolution, no that will be my next article because that is coming too, but first – What I’m referring to has been called the ‘greatest transfer of wealth in history’. In simple terms, it refers to the huge number of baby boomers (people aged between 60 and 74 this year) who own businesses and business assets and have come to the autumn of their business careers. In the next 10 years, virtually all of them will close, bequeath or sell their businesses due to health, age or retirement needs. This is no small event and its impact cannot be overstated, particularly when we consider that baby boomers own a disproportionate number of the small to medium enterprises that are the heart of the NZ economy. These businesses employ over 1 million people and deliver over one third of NZ’s GDP.
The great recession of 2008 to 2011 forced many baby boomers to hold on to businesses that they would have otherwise sold, primarily due to the sharp decline in values. These business owners are now coming to the market and the landscape for privately held businesses in New Zealand is poised for a seismic shift.
There will be many great opportunities to buy businesses that have long trading histories, have successfully navigated recessions and are stable with good employees and good systems. So the outlook for business buyers is excellent. For the sellers, it’s time to think about what an oversupply might mean to value and the sooner they bring these businesses to market, the better.
It’s an exciting time in the NZ business world as we see the baton being passed and the new leaders manage one of our country’s most important assets; small and medium businesses. If you are considering selling your business, stop hesitating and contact me today. The process is easier than you might think, when handled by professionals.
At LINK we also understand the confidentiality and sensitivity of these transactions. I look forward to hearing from you and helping you to hand the torch to the right person!
